AT&T/TM/VZ/ASTS satellite JV vs Starlink; CEO dismisses threat; stock up post-Q2; analyst upgrades; EchoStar deal closed; 600MHz deployment with Ericsson; all three carriers on AST SpaceMobile
Key Questions
How did AT&T's CEO respond to Starlink competition concerns?
CEO Stankey dismissed Starlink as 'late to the game' in a CNBC interview, emphasizing fiber's superiority and confirming no MVNO deal. This narrative defense helped support the stock's post-earnings rise.
What were the key results from AT&T's Q2 earnings beat?
AT&T reported EPS of $0.65 and added 432K subscribers, exceeding estimates. The stock rose 5% premarket to $21.81 following the results.
Which analysts upgraded AT&T and what were their price targets?
Wolfe Research upgraded to Outperform with a $29 PT, arguing Starlink won't enter mobility for years. Morgan Stanley raised its PT to $27 while maintaining Overweight.
What is the range of analyst price targets for AT&T stock?
Targets vary widely, with bulls like KeyBanc at $36 and BofA at $34, while bears include Wells Fargo at $18 (raised to $20). Other notes include Goldman at $30 and TIKR at $39.
How does the Dish bankruptcy win benefit AT&T long-term?
The win adds potential long-term free cash flow upside. It complements the EchoStar deal closing and supports the $10B buyback increase.
What did Wolfe analyst Supino say about SpaceX and Starlink?
Supino issued a 'Starlink Shmarlink!' note stating SpaceX won't enter mobility for years. This helped ease investor concerns around the Starlink IPO.
Did AT&T reaffirm its guidance after Q2 results?
Yes, guidance was reaffirmed alongside the raised $10B buyback. The company highlighted fiber and wireless growth drivers.
What role does satellite D2D play in AT&T's strategy per recent comments?
AT&T views satellite direct-to-device as a complement to mobile networks rather than a revenue threat. Stankey stressed it won't displace fiber advantages.
CEO Stankey dismissed Starlink as 'late to the game,' emphasizing fiber superiority. Wolfe upgraded to Outperform $29 PT, Morgan Stanley to $27. EchoStar deal closed ($23B spectrum) — 30 MHz mid-band and 20 MHz low-band across 400+ markets, with a wholesale deal for EchoStar/Boost Mobile. Stock up 5% premarket after Q2 beat, but later gave back gains on SpaceX fears. Wells Fargo Underweight $18 PT caused stock to slip 4% on Jul 29. FirstNet 5G standalone core launched. SpaceX announced plans for a terrestrial mobile network; Starlink added 1.7M subs in Q2 (108% YoY growth). Stock dropped 4% post-market on the SpaceX terrestrial news, but recovered 2.23% for the week ending Aug 7. A value analysis article (Jul 30) estimates fair value at $29.03. AT&T is deploying 600MHz with Ericsson using 8RX technology, achieving 2x speeds, 70% fewer slow spots, and 10% fewer dropped calls — 60% of network modernized. A balanced analysis (Jul 30) notes analyst skepticism, T-Mobile CEO's dismissal, Moffett's five-year timeline, and the unproven rooftop femtocell approach. A Barron's piece (Jul 30) counters the panic. The threat is now viewed as a 2027+ issue. New articles (Aug 7) detail Starlink's mobile plans including 2027 satellite upgrades, terrestrial base stations, and EchoStar spectrum use, with T-Mobile CEO dismissive. Another deep dive counters panic with capacity density and $100B+ capex argument. A recent Kalkine Media recap adds the joint venture with T-Mobile and Verizon for direct-to-device satellite. AT&T also deployed a neutral-host DAS at a 60,000+ seat SEC stadium, reinforcing network modernization execution. A new article (Aug 10) reinforces the bull case, arguing Starlink's limitations and capex challenges make AT&T a safer bet, citing valuation multiples and dividend yield. Most recently, a new article confirms all three US carriers (AT&T, T-Mobile, Verizon) are now on board with AST SpaceMobile's direct-to-device satellite service, adding a new competitive angle to the satellite race.